28 Shining Midcaps to Invest In

Midcaps are back in favour and those of you who missed reading the 8th Anniversary issue of Wealth Insight, we had featured a hand-picked collection of 28 stocks to build your midcap portfolio. The portfolio was built using our expertise in evaluating mutual funds, a practice that is ingrained in Value Research for over the past two decades. Portfolio Summary Total Investment (₹)280686Current Market Value (₹)326693.7Unrealised Gain (₹)46007.4Dividends Received (₹)1891Total Gain (%)16.4 As a first step, we selected four consistently performing midcap funds: Axis Midcap managed by Pankaj Murarka, HDFC Equity managed by Prashant Jain, IDFC Premier managed by Kenneth Andrade, and ICICI Prudential Value Discovery managed by Mrinal Singh. Sector Weightage SectorNet Asset (%)Value (₹)Engineering26.5886232FMCG20.1365299Technology14.9648524Chemicals7.5924605Services7.1523185Energy7.0322810Financial6.4821013Healthcare4.1213355Automobile3.110042Textiles2.879300 Next, we combined the unique stock universe that these funds invest in and excluded the large-cap stocks. We then excluded stocks that were highly overvalued. We also excluded stocks where these funds were reducing their holdings as well as those where the holdings were insignificant. Finally, we also excluded companies with consistently falling RoE. This left us with a universe of 28 companies. In the accompanying table, we have updated the performance of this portfolio, indicating how much an investment of ₹10,000 in each stock would be worth now. Sceptics may argue the futility of this exercise over a three month period, however, these stocks offer an opportunity even now. In this section, we will frequently update this portfolio, including any changes that may occur. Company NameCost perunit (₹)Total Cost(₹)Quantity(Units)LastPrice (₹)LatestValue (₹)Return(%)Amara Raja Batteries48210115215841226021.2Balkrishna Inds.746970013774100573.7Bata India11859476813321065512.4CMC172310337623841430438.4Coromandel International2639990382921109411.1eClerx Services117210547913491213915.1Exide Inds.1409968711651170417.4FAG Bearings India24659861429001160017.6Godfrey Phillips India29041161543170126809.2Greaves Cotton9799911031301343134.4Gujarat State Petronet769976131871139714.2ING Vysya Bank634101501662710032-1.2Karur Vysya Bank4519921225011102211.1Kaveri Seed Company6639949159651446845.4Kirloskar Pneumatic Co.5721029618620111608.4Mcleod Russel (India)29399673429499990.3MindTree90599581111501264927P&G Hygiene & Health Care40138027250711014326.4Persistent Systems11009897913101179019.1Petronet LNG16710032601871120811.7PI Industries3319938304601379038.8Redington India979991103105107948Savita Oil Technologies6179872167151144015.9Tilaknagar Industries5810022174457760-22.6Timken India25710023394271666366.2Torrent Pharmaceuticals67310100158711306929.4Vardhman